n NISM Certifications
NSM General NISM
Medium

Which of these is a characteristic of a 'European Option'?

Practice question from NISM Series I - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Can only be exercised at maturity

    Correct answer

  2. B

    Can be exercised at any time before expiry

  3. C

    Has no time value

  4. D

    Is always cheaper than a similar American option

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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